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Amid reports Apple is investing billions of dollars to help LG begin production of OLED displays for future iPhones, KGI Securities analyst Ming-Chi Kuo has issued a new report sharing his take on the situation.

lg_display_logo.jpg

According to Kuo, the OLED display panel for this year's "iPhone 8" has been the "single most troublesome component for Apple in terms of bargaining power," as Samsung is currently the only company with design and production capabilities to make the displays. To counter Samsung's advantage, Apple is working hard to support LG's efforts to ramp up similar expertise and capabilities.
We think Apple is therefore committed to having LGD geared up for its OLED iPhone display business in 2018 as it seeks to reduce supply risks. Even though LGD may likely start off with minimal initial penetration in 2018 (we estimate no more than 4-6%), the effort, with the full commitment of both Apple and LGD, will help LGD mature during the process and steadily gain supply share from 2019 onward. This will in turn continuously boost Apple's bargaining power on OLED prices.
Kuo predicts LG will capture 10-20 percent of iPhone OLED display production in 2019 and up to 20-30 percent in 2020, helping to diversify Apple's sourcing and limit Samsung's leverage.

While LG will have expertise at production of the display panels themselves, Kuo predicts Foxconn subsidiary General Interface Solution (GIS) will be brought on board to assist with lamination processes. GIS would also offer expertise in production troubleshooting and vertical integration with Foxconn, so it would be an ideal partner for accelerating LG's growth in Apple's display supply chain.

Article Link: Apple Pressing LG to Add OLED Display Production for 2018 iPhone, Limiting Samsung's Leverage
 
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Sunny1990

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Good to hear Apple is finally shifting to OLED.
I would like to have Samsung display. They had done really well with the OLED screen technology. Samsung "Note" and "S" series have some of best OLED display in the market.
 
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Relentless Power

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Apple probably wants OLED for the MacBooks as well.

I Doubt it. I don't for see the MacBook line ever having an OLED display. If anything, in the mere future, we might see micro LED make its debut at some point. It's still in development and I'm thinking if Apple decides to use a different display, micro LED would be the next step if the technology is mature enough at that point.
 
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DHagan4755

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wikiverse

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What are the chances Apple may have to do this again once mLED gains foothold? Making sure they have multiple supply sources that is.

Pretty slim based on the 7 years it has taken them to put OLED into a phone after Samsung did it with the S2.

Personally, I don't expect to see mLED in Apple products for at least another 7-10 years, and they could go the way of Nokia and Blackberry by then if they keep adopting new features years after their competitors.
 
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X--X

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Pretty slim based on the 7 years it has taken them to put OLED into a phone after Samsung did it with the S2.

Yeah but those displays sucked BAD real bad.

OLED always had some advantages to LCD but it was HORRIBLE when it came to color accuracy, which was OK because it was relatively young tech.

They caught up about 2 years ago and are now very competitive if not better in some instances (if factory calibrated).

So... Apple is not that late on this, I'm happy they waited those months, because I need accurate colors on my displays.
 
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jermwhl

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I Doubt it. I don't for see the MacBook line ever having an OLED display. If anything, in the mere future, we might see micro LED make its debut at some point. It's still in development and I'm thinking if Apple decides to use a different display, micro LED would be the next step if the technology is mature enough at that point.
That's a pretty bold guess, stating "EVER". OLED is making headways, just like LCD did with Plasma. Less power consumption, better blacks, slimmer designs, blah, blah, blah....it just makes sense to go with OLED. mLED is just too far off in adoption/development to pass right over OLED. OLED is the best logical course for Apple if it is going to invest so much in displays for its iPhone, why not implement it in other devices as well. Especially since they pride themselves on "gorgeous displays".

https://www.macrumors.com/2017/07/28/apple-investing-billions-in-lg-for-oleds-report/

I kinda thought this article made it pretty obvious that Apple was diversifying OLED.
 
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Relentless Power

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But there are a plethora of caveats. How many reports are have completely off base before? That's nothing more than a rumor just like anything else that's on here. And it's also not guaranteed to be entirely accurate either. Again, It's just my opinion I don't forsee the MacBook ever offering an OLED display.

The reason I say this, is I feel micro LED can improve the screen brightness over three times what OLED can offer, reduce power draw, which results in longer battery life and is overall more efficient. And I'm taking into consideration that micro-Led may or may not be mature enough as I stated before to be ready for implementation. But overtime, we will see. It also depends if future suppliers can meet the demands for OLED panel development as well. And given Apple's track record, I think it's also dependent on how they diversify their lineup with updating the MacBook if we were ever to see OLED.
[doublepost=1501473934][/doublepost]
https://www.macrumors.com/2017/07/28/apple-investing-billions-in-lg-for-oleds-report/

I kinda thought this article made it pretty obvious that Apple was diversifying OLED.

I think the link you're indicating that you provided is more specific to using LG as a future supplier for the iPhone for OLED, As well as the current article in this thread regarding the iPhon . It's very possible I could be wrong that OLED might make its way to the MacBook, but I still doubt it. I think OLED has matured a lot and it really depends if suppliers can meet Apples demands for enough units for MacBooks. And yes, I do agree that micro LED is yours out for advancement , but the technology I believe exist is strong a possibility if Apple chooses to opt for this route taking into effect if Micro-LED is ready for mass production and supplier relations.
 
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jermwhl

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But there are a plethora of caveats...
[doublepost=1501473934][/doublepost]

I think the link you're indicating that you provided is more specific to using LG as a future supplier for the iPhone for OLED, As well as the current article in this thread regarding the iPhon . It's very possible I could be wrong that OLED might make its way to the MacBook, but I still doubt it. I think OLED has matured a lot and it really depends if suppliers can meet Apples demands for enough units for MacBooks. And yes, I do agree that micro LED is yours out for advancement , but the technology I believe exist is strong a possibility if Apple chooses to opt for this route taking into effect if Micro-LED is ready for mass production and supplier relations.

The link I provided should've been in a different posting, it was directed towards the posting of this article, rather than at you specifically. It was just meant to say Kuo's analysis was kind of obvious, based on the linked article, in my opinion. Sorry for the misunderstanding.
 
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Relentless Power

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The link I provided should've been in a different posting, it was directed towards the posting of this article, rather than at you specifically. It was just meant to say Kuo's analysis was kind of obvious, based on the linked article, in my opinion. Sorry for the misunderstanding.

I figured that's what your intentions were. Thanks for pointing that out.
 
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BvizioN

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Pretty slim based on the 7 years it has taken them to put OLED into a phone after Samsung did it with the S2.

Personally, I don't expect to see mLED in Apple products for at least another 7-10 years, and they could go the way of Nokia and Blackberry by then if they keep adopting new features years after their competitors.

That's what really separates Apple from these other companies. Apple does not usually put immature technology on their products, while others rush to be first and make their products suck. Apple tend to wait until technology is mature enough for their standards Good for them. That's one of the reasons I stick with Apple.
 
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Bacillus

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That's what really separates Apple from these other companies. Apple does not usually put immature technology on their products, while others rush to be first and make their products suck. Apple tend to wait until technology is mature enough for their standards Good for them. That's one of the reasons I stick with Apple.
That argument is used, misused, and will always be the half-excuse when Apple chose the wrong standards and get outpaced by the competition. It only describes the half of the coin. As it landmarks the beginning if a me-too company. The end of sovereignty, where dependance on the competition comes in place and becomes problematic, as yields become disappointing, and the timing/planning is getting critical while they don't own the process, and the whole trajectory becomes a nightmare. At the end they need to invest in the suppliers equipment and management, making themselves part of the problematic process.
It seems they haven't learned anything of the sapphire debacle 5 years ago.
Now with their immense scale of operation this is the worst strategy you could imagine... they should have gradually introduced OLED, started years earlier, with smaller volumes and then upscale if they wanted it to reach the mainstream volume.
The factor money must save their ass, but it does not make up for bad planning, the inability to realize piles of patents into their own superior screen technology.
 
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bobob

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Without Tim Cook, Apple would have never been able to make 1+ billion iPhones - - keeping the components supplies flowing at these extreme numbers is far from a trivial task.
 
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X--X

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Without Tim Cook, Apple would have never been able to make 1+ billion iPhones - - keeping the components supplies flowing at these extreme numbers is far from a trivial task.

If there is one thing nobody has ever criticized Tim Cook on, it's his operational skills.

Strategy, vision, employee management, encouragement of innovation, love of product, on the other hand....very flaky.
 
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bobob

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If there is one thing nobody has ever criticized Tim Cook on, it's his operational skills.

Strategy, vision, employee management, encouragement of innovation, love of product, on the other hand....very flaky.
Continuing to repeat that meme doesn't make it true. Tim Cook is Steve Jobs' hand-picked replacement who has carried Apple to greater and greater success.
 
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cgsnipinva

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That argument is used, misused, and will always be the half-excuse when Apple chose the wrong standards and get outpaced by the competition. It only describes the half of the coin. As it landmarks the beginning if a me-too company. The end of sovereignty, where dependance on the competition comes in place and becomes problematic, as yields become disappointing, and the timing/planning is getting critical while they don't own the process, and the whole trajectory becomes a nightmare. At the end they need to invest in the suppliers equipment and management, making themselves part of the problematic process.
It seems they haven't learned anything of the sapphire debacle 5 years ago.
Now with their immense scale of operation this is the worst strategy you could imagine... they should have gradually introduced OLED, started years earlier, with smaller volumes and then upscale if they wanted it to reach the mainstream volume.
The factor money must save their ass, but it does not make up for bad planning, the inability to realize piles of patents into their own superior screen technology.



As stated in another thread ---- Apple is doing the innovating on their own and owning the technology stack --- just not into screens. Developing and manufacturing "new" screen technology is expensive and requires a lot of capital. Better to buy into the supply chain that exists and use that secure your supply.

Where Apple has invested is in the chip design (CPU and GPU) and is now sourcing to one supplier -- TSMC --- one in which Apple has taken an increased financial stake with rumors of a purchase of that firm over time. Apple is also investing a significant share in Toshiba's memory unit. New developments in RAM and Apples unique integrated chip stack gives the "sovereignty" you seek in the most important part of the hardware.

Over time -- Apple may develop new screen technology and appropriate its own---- but they have to prioritize. I believe they focused on the most important part first.
 
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SactoGuy18

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I also think Apple is also helping Foxconn/Sharp get into the OLED display business. Which may be necessary given that when the 2018 model iPhones arrive, they will all go OLED tourchscreens.
 
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Bacillus

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As stated in another thread ---- Apple is doing the innovating on their own and owning the technology stack --- just not into screens. Developing and manufacturing "new" screen technology is expensive and requires a lot of capital. Better to buy into the supply chain that exists and use that secure your supply.

Where Apple has invested is in the chip design (CPU and GPU) and is now sourcing to one supplier -- TSMC --- one in which Apple has taken an increased financial stake with rumors of a purchase of that firm over time. Apple is also investing a significant share in Toshiba's memory unit. New developments in RAM and Apples unique integrated chip stack gives the "sovereignty" you seek in the most important part of the hardware.

Over time -- Apple may develop new screen technology and appropriate its own---- but they have to prioritize. I believe they focused on the most important part first.
Sadly, the unfortunate outsourcing history, with investments and last moment desinvestments in GT Advanced and strategic investments in Corning, their own advances in ceramics tech, their LED patents, Cook's references to their own supremacy, while outsourcing seem to prove different.
It shows a less deliberate outsourcing strategy, with continous sailing on both ends. Which can be tolerable if it can match demand, i.e. by securing enough yield for their flagship introductions.
That's the whole idea of souvereignty, and it doesn't look well if a market leader comes to depend on its largest competitor...
Prioritizing - of the wrong kind(s)
Overtime - too late if you have to defend market leadership when launching billions of devices
 
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